The latest 0.25 per cent cut in interest rates by the Bank of England is unlikely to bring any quick relief for people seeking mortgages, according to lenders in the district.

Most banks and building societies are limiting mortgage lending and the situation is reminiscent of days of mortgage rationing last seen in the 1970s.

But Bradford businesses, which are generally still trading well but expecting tougher times ahead, have welcomed the interest rate cut Mike Cartwright, head of policy at Bradford Chamber of Commerce, which represents 1,100 firms, said: "Businesses are not necessarily feeling the pinch locally just yet, as our latest economic survey shows.

"But the tightening of credit conditions and the likelihood that obtaining credit will be more difficult means that this decision was essential."

EEF, the regional manufacturers' organisation, also welcomed the cut and urged the Bank of England to be ready to take further decisive action.

The Institute of Directors regional chairman, Nimble Thompson said the move would help to bolster confidence to businesses of all sizes.

While most banks and building societies are likely to pass on the some or all of the latest cut through their standard variable mortgage rate to existing mortgage holders, some will not rush to do so across their full range.

Borrowers on tracker' mortgages that directly reflect the Bank of England base rate are the only ones who will enjoy an automatic cut.

This includes most of Bradford & Bingley's borrowers who are largely buy-to-let property owners through its Mortgage Express subsidiary.

David Holmes, corporate affairs manager at Bradford-based Yorkshire Building Society, which has 130,000 borrowers, said the economy was seeing a "return to reality".

He said: "We are now in a situation where lenders can set their own prices for mortgages and a base rate change does not have the same immediate impact in current market conditions.

"Unless someone is on a tracker mortgage the latest cut will have little immediate effect.

"The Yorkshire is still lending and we have funding to underwrite loans well into next year. But, like everyone, we are focusing on the quality rather than the quantity of lending business.

"The worry is that if first time buyers can't get on to the housing ladder then the danger is that the whole market seizes up."

Jason Clarke, head of public relations at Skipton Building Society, said the Society would review its standard mortgage rate in the light of the move.

Some of the UK's biggest mortgage lenders, however, were quick to announce they would be passing on yesterday's interest rate cut in full.

Halifax, Nationwide and Barclays' mortgage arm, the Woolwich, all said they would be reducing their standard variable mortgage rates by the full 0.25 per cent. Lloyds TSB, which also offers mortgages under the Cheltenham & Gloucester brand, and First Direct said in advance that they would mirror the MPC's decision.